CtW challenges Citigroup directors

A coalition working on behalf of shareholders will urge Citigroup shareholders to reject board members of the bank.

A coalition working on behalf of shareholders will urge Citigroup shareholders to reject board members of the New York City-based bank.
CtW Investment Group, an affiliate of a coalition of American Labor Unions called “Change to Win,” has challenged Citigroup’s Audit Committee members, C. Michael Armstrong, George David, John M. Deutch, Andrew N. Liveris and Anne M. Mulcahy to explain what was done to shield shareholders from the subprime meltdown.
Citigroup today reported a fourth-quarter net loss of $9.83 billion with $18.1 billion in write downs.
CtW drafted letters to the five Citigroup directors on Jan. 14, asking why they increased mortgage-related exposure in 2006, when the risk of subprime-credit crisis started to become known.
CtW officials said in a statement that as early as next month Citigroup is expected to issue a proxy statement asking shareholders to re-elect the five Audit Committee directors.
“The Citi Audit Committee has diligently carried out its responsibilities as set forth in its Charter including with respect to issues surrounding mortgage related exposures,” said Citigroup spokeswoman Shannon Bell.
“There is no basis for an election challenge.”